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Standard Life Aberdeen sells insurance arm to Phoenix

Standard Life Aberdeen has sold its insurance arm to Phoenix in a £3bn deal.

In the first results since the merger of Standard Life and Aberdeen Asset Management, the firm has said it has decided to exit the insurance market.

Phoenix will pay a total of £2.3bn in cash for the business. Standard Life Aberdeen will then take a 19.9 per cent shareholding in Phoenix, increasing the total value of the deal to £3.2bn.

Aberdeen Standard Investments currently manages around £48bn on behalf of Phoenix in a partnership deal that has also been extended today.

Co-chief executives Martin Gilbert and Keith Skeoch said that the deal was the “logical next step” in transitioning the firm into a “world class investment company.”

Standard Life Abderdeen says in a statement: “While the long-term savings market in the UK is supported by attractive structural growth trends, the board believes that Standard Life Aberdeen can best capture the benefits of these growth dynamics through Aberdeen Standard Investments and its retail platforms. In partnering with Phoenix Group, whose expertise is in administering and servicing long-term savings, Standard Life Aberdeen is able to realise attractive value for the disposed businesses, while continuing to benefit from access to related assets and flows.”

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